UPDATE 2-Oil prices above $91/bbl, dollar, cold snap supports

                                
 * Nymex hovers below 26-month top
                                
 * Strong fundamentals, weaker dollar support prices
                                
 * OPEC's resistance to increasing output also lifts mood

 (Updates prices, adds comments)	
                                
 By Seng Li Peng	
                                
 SINGAPORE, Dec 28 (Reuters) - U.S. crude prices rose above 
$91 a barrel, hovering below a 26-month top hit in the 
previous session, supported by a weaker dollar and hopes that 
a major snow storm on the U.S. East Coast would stoke demand 
for heating oil.	
                                
 Prices were also getting a lift from OPEC's resistance to 
pumping more crude through 2011 as the market was well 
supplied and comments by Kuwait's oil minister that the global 
economy could withstand an oil price of $100 a barrel. 
[ID:nLDE6BO01P]	
                                
 U.S. crude for February <CLc1> was up 3 cents at $91.03 a 
barrel at 0738 GMT, after hitting a peak of $91.88 in the 
previous session -- the highest since October 2008. ICE Brent 
crude <LCOc1> traded 9 cents lower at $93.76 a barrel.	
                                
 "Data in recent weeks have been supportive of the stocks 
and commodity markets globally. The U.S. will avoid a 
double-dip. The Asian region including Japan looks a little 
bit better, with its industrial production finally showing an 
increase," said David Cohen, director of Asian Economic 
Forecasting at Action Economics.	
                                
 "I think a lot of people are expecting prices to turn 
higher towards $100 a barrel next year."	
                                
 Japanese factory output rose for the first time in six 
months in November and manufacturers are expected to boost 
production in coming months, suggesting that firm demand in 
Asia will help the economy resume a recovery early next year. 
[ID:nTOE6BR005].	
                                
 Strong fundamentals have overshadowed the latest hike in 
interest rates from China, the world's second-largest consumer 
of oil. 	
                                
 "Everyone is watching China, which has to continue 
tightening interest rates. But I do not think the higher 
interest rates would derail the substantial momentum that 
continues in the Chinese economy," said Cohen. 	
                                
 China's central bank raised interest rates on Saturday for 
the second time in just over two months as it stepped up its 
battle to rein in stubbornly high inflation. [ID:nTOE6BO010]	
                                
 Separately, the dollar came under pressure, hitting a 
three-week low against the yen and a seven-low against the 
Australia dollar while the euro also spiked against the 
dollar. [ID:nL3E6NS02M]	
                                
 A weaker greenback supports dollar-denominated commodities 
such as oil, making it cheaper for those holding other 
currencies. 	
                                
 	
                                
 COLD SNAP SUPPORTS	
                                
 A large winter snowstorm hit the northeast United States, 
burying cities in knee-deep snow, leaving thousands to camp at 
airports and snarling traffic with blowing snow and icy roads 
at the end of the busy Christmas weekend. [ID:nN27222344]	
                                
 But the snowstorm did not affect refineries' operations. 
[ID:nN27230548] 	
                                
 Nonetheless, the cold is expected to keep demand for 
heating oil firm in the short-haul, thereby supporting oil 
prices. 	
                                
 Speculators have piled back into the market as 
fundamentals improved. Money managers extended their net long 
crude oil positions to a fresh record high on the New York 
Mercantile Exchange in the week to Dec. 21 as crude prices 
edged higher, the Commodity Futures Trading Commission said. 
[ID:nN27198844]	
	
 (Editing by Himani Sarkar)